DTI-EMB conducts info session on export tax-related matters

THE Export Marketing Bureau (EMB) of the Department of Trade and Industry (DTI) conducted an information session regarding Section 31 of the Tax Reform for Acceleration and Inclusion (TRAIN) law and Department of Finance’s One-Stop Shop Services for Exporters on February 22 at the DTI International Building in Makati.

More than 70 participants composed of exporters, business-support organizations, officers from relevant government agencies and other stakeholders attended the seminar.

Director Ernesto Hiansen, executive director of the DOF’s One-Stop Shop Center (OSSC), introduced the services of his office and how these services are relevant to exporters. The OSSC is an interagency tax credit and duty drawback center mandated to process tax credit claims of exporters and other industry sectors. Tax credit certificates (TCCs) are one of the incentives both exporters and manufacturers can enjoy to enhance their competitiveness. Hiansen said the center undertakes various facilitation measures to expeditiously process these TCC claims.

Revenue lawyer Rhodora Devilla of the Bureau of Internal Revenue (BIR) discussed Republic Act 10963, also known as the TRAIN law, in particular Section 31: Value-added tax (VAT) on sale of goods or properties, which essentially introduced new provisions on export taxes. This section covers new amendments to the National Internal Revenue Code on export sales, zero-rated sales and corresponding VAT-refund claims. The new regulation has impact on the VAT refund and zero-rated incentives enjoyed by exporters and their suppliers.

Devilla further clarified that since the BIR is still in the process of crafting new revenue regulations (RRs), the status quo shall apply, which means that until such time these RRs are implemented by identified government agencies, exporters and manufacturers can still apply for their VAT-refund claims.

After the session, an open forum was conducted, where participants took the opportunity to ask questions and discuss their concerns with the resource speakers.

The session was held under the Philippine Export Competitiveness Program, an EMB umbrella program that aims to boost the competitive stance of exporters and stakeholders through the conduct of information sessions, seminars and the like, with regards to export trends and new regulations.